Analysis: The OAS indicator has retreated from recent highs, indicating a short-term bullish trend for Bitcoin and Nasdaq.

According to Deep Tide TechFlow news on March 21, as reported by CoinDesk, the ICE/BofA US High Yield Index Options Adjusted Spread (OAS), a key indicator of economic sentiment and corporate credit health, has retreated from recent highs, supporting a rebound in risk appetite for Crypto Assets and the stock market. However, analysts believe this relief may be short-lived.

The OAS indicator measures the average yield spread between high-yield corporate bonds priced in dollars and U.S. Treasuries, adjusted for embedded options in the bonds. This indicator is widely regarded as a barometer of credit risk, with widening spreads typically representing an increase in investor concerns over corporate defaults or economic weakness.

Currently, OAS has decreased from a six-month high of 3.4% at the beginning of this month to 3.2%, a decline that supports the rebound of Bitcoin (BTC) and the Nasdaq. Previously, this spread soared 100 basis points within four weeks to mid-March, as Trump’s tariff policies raised concerns about an economic recession, causing Bitcoin to fall below $80,000 and the Nasdaq to be severely impacted.

However, analysts expect OAS spreads to widen further in the coming weeks as the negative effects of Trump’s tariffs become apparent. Hans Mikkelsen, managing director of credit strategy at TD Securities, said in a recent client note: "We think this is just the beginning and that things are going to get worse before they get better. "

From a technical analysis perspective, OAS has broken through the three-year downtrend line, which is a high alert signal for risk asset investors.